Dollar-Cost Averaging (DCA)

Definition: Dollar-cost averaging is that investing strategy where the investor puts in a fixed sum at regular intervals into specific security or combination of different securities irrespective of its price on the due date. Hence, the investor gets more units when the prices are low and vice-versa. The DCA strategy eliminates the chances of timing […]

Succession Planning

Definition: Succession planning refers to the process or strategy through which an organization identifies and develops candidates competent to take up the leadership and other positions that the present occupants will vacate in the future due to expected or unexpected reasons like retirement, relocation to other companies, incapacitation, death, etc. These potential replacements can be […]

ESG Investing

Definition: ESG investing is a form of investment that emphasizes non-financial but environmental, social, and governance factors or metrics (rather than just financial returns) when making investment decisions. It is an ethical perspective towards the company’s performance and potential. ESG investing goes like this: E – Environmental Factors S – Social Factors G – Governance Factors These are the […]

Market Capitalization

Definition: Market capitalization is explained as the company’s market value denoted in dollar amount. It is the valuation of a company’s outstanding or publicly traded shares available for exchange in the open market or stock market. However, it cannot be misinterpreted as the overall corporate value. The market cap determines the risk and returns associated […]

CD Ladder

Definition: A CD ladder is an approach of distributing a sum available for investment into multiple certificates of deposits of same or different amounts but necessarily distinct maturity dates. The arrangement of CDs is such that an instrument matures each year, ensuring higher liquidity of funds. Also, when every CD have a varied interest rate, […]

Lifecycle Fund

Definition: A lifecycle fund is a long-term investment option providing the feature of automatic adjustment of the asset class and composition to reduce the risk appetite while moving closer to the maturity date of the plan. In the beginning years the plan includes more aggressive stocks however, the ending years foresee more of secured bonds […]

Portfolio Investment

Definition: A portfolio investment is a strategic composition of securities, bonds, debt funds and other financial instruments with the view of making returns or value enhancement of the funds invested. An investor can self-design an investment portfolio or can get it done from a portfolio manager. Sticking a single stock appears to be a perilous […]

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